Blockchain platforms and the cryptocurrencies that power them offer the most exciting advances to financial technology in decades. If you are reading this article, that probably isn’t news to you. As funds have poured into cryptocurrencies over the last few years, huge gains and dramatic losses have become the norm. But the truth is, these market fluctuations belie a much more important development: the emergence of the tools and resources necessary to build the collaborative and cooperative economic models of the future.
The power of decentralization and the freedom of trusted peer to peer transactions will enable new financial ecosystems to facilitate resource and information sharing, community interaction, and novel forms of wealth creation and distribution that we have only begun to imagine. Remember, Bitcoin has only been in existence since 2009, and Ethereum’s crowdsale was only two years ago!
Longer term, widespread financial growth and social benefits from these technologies will not be dependent on any one venture, but will result from a foundational evolution in monetary systems as a whole. Cryptodex believes that curated pools of multiple currencies is an optimal way to represent that systemic value.
It’s Time to Look Beyond the Volatility
The potential for cryptocurrencies to restructure outdated economic paradigms and support increasingly collaborative economies presents an unprecedented growth opportunity for both speculative and long term investment. From the 30,000 foot perspective, we anticipate positive shifts in how we transact value in the coming decades, which may well touch every aspect of our economy. This will give many more people and communities access to the tools of wealth creation and economic cooperation, with fewer middlemen to siphon away the profits.
It is therefore no surprise that as blockchain technology matures, overall interest in cryptocurrencies is increasing rapidly. Achieving wider and more stable public participation in decentralized markets will not only benefit individual users, but will simultaneously accelerate growth and innovation in the blockchain sector as a whole. As it becomes clear that the rising tide of blockchain innovations has the potential to lift all boats, more potential users are going to be asking how to catch the tide without getting pummeled by the waves.
Diversified Cryptocurrency Pools as a Solution
At present, there exist very few risk-balanced and diversified entry points into cryptocurrencies. High volatility and specialized knowledge are required to participate effectively in this market, which puts sound investment strategies beyond the ken of the majority of potential entrants. Newcomers, casual users, and those uninterested in the adrenalized pace of day trading have little meaningful access to cryptocurrencies as means to balance their assets, nor do they have the expertise required to develop robust risk-balanced portfolios.
Cryptodex will solve this challenge by providing an accessible platform with carefully curated risk-balanced pools of cryptocurrencies. Think of these pools as similar to index funds, except they represent aggregated blockchain platforms and their currencies. Our approach offers several key benefits which include diversification, risk balancing, education, and accessibility.
In Part 2 of this article, we will break down the components of our structure in greater detail. In the meantime — here’s all the social media stuff: